Offset Printing Press (Job Work)

Product Code	289018013
Quality and Standards	As per Customer's Specifications
Production Capacity	Qty. : 432000 Nos. (per annum) Value : Rs. 43200000
Uploaded on	April 2007

Introduction

Offset Printing is the latest method of printing system in any language. The method of printing in earlier days was by rotary printing press in which the matter to be printed was to be first composed manually.

In Offset printing, the matter which is to be printed is fed into the computer and after that with the help of the camera, it is exposed and film is prepared through developer/chemicals and put into Offset printing Machine to take out the print. Offset printing method is the latest one where the quality of printing is very fine in comparison to the previous method.

Market Potential

Today is the age of technology. Offset Printing Press is the example of new technology. The required material may be printed in minimum time with good accuracy and better quality. Now a days, the number of schools, colleges, offices and other business activities is increasing day by day. They require stationery, books and other printed materials. Therefore, Offset Printing Press has very good scope, particularly in Urban and semi–Urban areas.

Basis and Presumptions

• This report is worked out on the basis of 75% capacity utilization on triple Shift and 300 working days per annum.
• The machinery and equipment are of standard make.
• The cost of raw materials and other expenditure is approximate and based on current market rates.
• The period for achieving envisaged capacity utilization is estimated to be one year after commencement of production.
• Interest rate for fixed and working capital has been calculated @ 12% per annum.
• Pay back period would commence after 12 months and the repayment period is estimated at 3 years.

Implementation Schedule

• The entrepreneur has to arrive at a decision in order to select this product. The guiding factor in this regard would be the market potential, demand and supply gap and availability of resources. It may take 2 to 3 weeks' time.
• After selecting the product, the entrepreneur has to get provisional registration from DIC, so that he can apply for allotment
  of land, power, etc., for which about one week time is required.
• In order to obtain financial assistance from the financial Institutions, like Commercial Banks or State Financial Corporations, a detailed Project Report is required to be prepared. On the basis of the report, financial institutions may take 8 to 12 weeks time for sanctioning and disbursing the loan. Accordingly, orders for plant andmachinery may be finalized and placed. Simultaneously, order for purchase of raw materials is also to be finalized and recruitment of key staff is to be done. This would require 3 to 4 weeks' time.

Technical Aspects

Process of Manufacture

Composing of matter which is to be printed, is done on computer with the help of special Softwares such as Corel Draw, Photoshop, MS Office, Page Maker, etc., Thereafter a film is produced with the help of a camera. This film is called negative. The matter, which is to be printed is taken on this film/negative.

The negative and a aluminium plate are put into the printing down frame/ exposer. Before starting the exposer, the presetting of timer is done in the timer/ watch. Generally it takes approx. 200 seconds for making positive. The time exposer is switched off automatically as soon as positive has been built up. The image of negative is printed on the aluminium plate, which is called positive. After that, the developer is spread on the plate followed by washing with the fresh water. During this process, the matter gets printed on the plate automatically. Thereafter, the aluminium plate is fitted in the offset printing press. This plate is called P.S. Plate, when it is used for first time and thereafter it is called Y-pon Plate. The papers are cut on Paper Cutting Machine. Then the papers are fed one by one into Offset Printing Press. Generally the capacity of offset printing press is 4000 impressions per hour.

Quality Control and Standards

As per Customers' requirements.

Production Capacity (per annum)

Quantity(per annum)	Value (Rs.)
432000 Nos. (Magazine/Souvenir/books)	43200000
Motive Power	16 H.P.

Pollution Control

The manufacturing activity does not pose any pollution as such no special pollution measures are required.

Financial Aspects

Fixed Capital

(i) Land and Building (per month)	(In Rs.)
(i) Land 300 sq. mtr. @ Rs. 5000 per sq. mtr including registration	1500000
(ii) Cost of land development, fencing, approach road, inside roads, land scaping, drainage etc. @ Rs. 1000 per sq. mtr.	300000
(iii) Total built-up area 250 sq. mtrs. as follows
Administrative building 50 sq. mtrs. construction cost @ Rs. 7,500 per sq. m	375000
Hall cum shed 150 sq. mtrs. construction cost @ Rs.6000 per sq. mtr.	900000
Stores, staff canteen etc. 50 sq. mtrs. @ Rs. 6,000 per sq. mtr.	300000
Water System (including Bore Well + over head tank etc)	500000
Total civil cost= cost of land + building	3875000

(ii) Machinery and Equipment

Description	Ind./ Imp.	Qty. Nos.	Total (In Rs.)
Off-Set Printing Machine Size 18 x 25", Single Colour with 5 H.P. Dominent make	Ind.	1	1300000
Computer with Printer and softwares	Ind.	1	70000
Printing Down Frame/Exposer, size 23x36"	Ind.	1	100000
Paper Cutting Machine, Size 23 x 36", 2 H.P.	Ind.	1	300000
Paper Creasing M/c. @ Rs 10000 each	Ind.	2	20000
Paper Stapler M/c @ Rs 8000 each	Ind.	2	16000
Binding and measuring equipment.	Ind.	L.S.	15000
Perfect Binding Machine	Ind.	1	200000
Generator Set for Electricity Backup		1	500000
Electrification and Installation charges @ 10%	.		202100
Office furniture and equipment			100000
Total			2823100
(iii)Pre-operative Expenses			50000
Total Fixed Capital (i+ii+iii)			6748100

Working Capital (per month)

(i) Personnel

Description	No.	Salary (Rs.)	Amount (In Rs.)
Manager/Supervisor	2	15000	30000
Skilled Workers	9	5000	45000
Un-skilled Workers	9	3000	27000
Accountant-cum-Typist (Part-time)	1	5000	5000
Watchman/Peon	2	3000	6000
Total			113000
Add perquisites @ 22%			24860
Total			137860

(ii) Raw Material (per month)

Particulars	Qty.	Rate (Rs.)	Amount (In Rs.)
Paper Ream	7200	380	2736000
Card Sheet	18000	11	198000
Aluminium Plate in Nos.	200	250	50000
Ink in Kgs	80	360	28800
Developer in Kgs	40	100	4000
Gum in Kgs.	40	100	4000
Multi Colour	L.S.		10000
Staple Pin etc.	L.S.	25	2000
Total			3032800

(iii) Utilities

	(Rs.)
(a) Electric Power, @ Rs. 5.5 per unit,13 H.P.	18150
Total	18150

(iv) Other Contingent Expenses (per month)

	(In Rs.)
Processing charges of Cover page Design	10000
Transportation charges	15000
Postage and Stationery	5000
Telephone	4000
Publicity	5000
Insurance and Taxes	3000
Miscellaneous Expenses	10000
Total	52000

(v) Total Recurring Expenditure (per month) (i) + (ii) + (iii) + (iv)	3240810
(vi) Total Working Capital for 2 months	2 x 3240810
	6481620

C. Total Capital Investment

(i) Fixed Capital	6748100
(ii) Working capital for 2 months	6481620
Total	13229720

Financial Analysis

Cost of Production (per year)	(In Rs.)
Recurring Expenditure	38889720
Depreciation on Machinery and equipment @ 10%	252100
Depreciation on Building @ 5%	193750
Depreciation on office furniture and equipment @ 20%	20000
Interest on total capital investment @ 12%	1587566
Total	40943136

Turnover (per year)

Item	Qty.	Rate (Rs.) Per Each	Total (In Rs.)
Magazine/ Souvenir/Book	432000	100	43200000

Net Profit (per year) (Before Income Tax)

Annual Profit	= Turnover - Cost of Production
	43200000 - 1587566
	= 2256864

Net Profit Ratio

	Net Profit per year × 100
	Turnover per year
	2256864 × 100
	43200000
	= 5.06%

Rate of Return

	Net Profit per year × 100
	Total Capital Investment
	2256864 × 100
	13229720
	= 16.52%

Break-even Point

Fixed Cost (per year)	(In Rs.)
Depreciation on Machinery and equipment @ 10%	252100
Depreciation on Building @ 5%	193750
Depreciation on office furniture and equipment @ 20%	20000
Interest on total capital investment @ 12%	1587566
40% of Salary and wages	661728
40% of other contingent expenses	249600
Total	2964744

B.E.P	Fixed Cost × 100
	Fixed Cost + Annual Profit
	2964744 × 100
	2964744 + 2256864
	2964744 × 100
	5221608
	= 56.78

Addresses of Machinery and Equipment Suppliers

• M/s. Speedographics India Ltd.
  Industrial Area, Rajaji Nagar,
  Bangalore.
  
• M/s. J. Mahaveer and Co. Ltd.
  3620-21, Netaji Subhash Marg,
  Daryaganj,
  New Delhi - 110 002.
• M/s. Rajasthan Machine Tools
  1712, Darjion Ka Chouraha,
  Khajanewalon Ka Rasta,
  Chandpole Bazar,
  Jaipur - 302 001.
• M/s. Prateek Machinery Pvt. Ltd.
  V-18A, Prabhu Marg,
  Tilak Nagar,
  Jaipur.
• M/s. Sharpline Engineering Co.
  B-9/181-182, Ist Floor,
  Sector–5, Rohini,
  New Delhi - 110 085

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com